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Cryptocurrency trading platform Crypto.com announced Thursday that it is laying off 12% of its staff as the company integrates artificial intelligence.
“We are joining the list of companies integrating enterprise-wide AI. Companies that do not make this pivot immediately will fail,” CEO Kris Marszalek posted on X.
“As part of this step, we have also made a targeted ~12% workforce reduction of roles that do not adapt in our new world,” he added, saying the new structure prepares the company for “continued success.”
A Crypto.com spokesperson told CNBC that all impacted team members have been notified, but declined to provide the exact number of employees let go.
The cryptocurrency platform’s layoffs come as a growing number of companies cite AI for mass workforce reductions.
Last month, Block laid off more than 4,000 employees, almost half of its workforce.
“The core thesis is simple. Intelligence tools have changed what it means to build and run a company,” CEO Jack Dorsey wrote in the announcement to shareholders.
“A significantly smaller team, using the tools we’re building, can do more and do it better,” Dorsey said.
Earlier this week, Reuters reported that Meta is planning layoffs that could affect up to 20% of the company.
The decision would help offset the company’s high spending on AI infrastructure, and “prepare for greater efficiency brought about by AI-assisted workers,” according to Reuters.
Sydney-based software company Atlassian announced last week that it’s eliminating 10% of its workforce, or about 1,600 jobs.
In a blog post, CEO Mike Cannon-Brookes wrote that the cuts were to “self-fund further investment in AI and enterprise sales, while strengthening our financial profile.”
The company has lost over half of its value this year as AI tools put pressure on software stocks.
Entry-level workers have faced job struggles as the proliferation of AI slows hiring.
Last week, ServiceNow CEO Bill McDermott told “Squawk on the Street” that unemployment among new college graduates “could easily go into the mid-30s in the next couple of years.”
“So much of the work is going to be done by agents,” McDermott said.
In February, Marszalek bought the domain name AI.com for $70 million, the highest price ever disclosed for a domain, according to the Financial Times. The site ran a 30-second Super Bowl ad this year as part of its AI agent launch.
In 2023, Crypto.com, which is headquartered in Singapore and has offices in the U.S. and other locations, laid off 20% of its global workforce, citing the collapse of crypto firm FTX and a “focus on prudent financial management.”
